CATO INSTITUTE

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CATO INSTITUTE

• The Right Road for America
• Alan E. Pisarski

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NATIONAL TRANSPORTATION POLICY 101

• PLEASE BUY CARS we need to stimulate jobs in a
  weak economy
• BUT WAIT!
• PLEASE DONT USE THEM. They create Green House
  Gases and bad stuff. We have to coerce people out
  of their cars (maybe we could use them for lawn
  ornaments?)
• BUT WAIT!
• If they dont use them there will be no gas tax
  revenue and no way to fund the transit that
  people will need after we force them from their
  cars.
• Would you mind mailing a check for the gas tax
  you would have paid if you had used your car?
• Please make payable to US Treasury!

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--THE NEXT REAUTHORIZATION --THE PRESENT IMPASSE
IS NOT NEW

• Whenever there is no money the talk is about
  federal roles and policy
• Whenever there is no money the talk turns to
  being innovative!
• When the money shows up the talk stops we all go
  home and go to work
• IF THE CONGRESS PASSED A 10 (or 5) a gallon gas
  tax we would call it a plan

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Next Reauthorization

• Finance, Finance, Finance
• Stimulus package a factor
• Tolling, congestion pricing disliked by
  leadership but few options
• More afraid of gas tax increases
• Is private sector still ready with
• Devolution by Default ??

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Next Reauthorization

• Maybe reorg DOT away from modes to functional
  structure intercity metro
• Metro mobility transit, bike, walk
• Intercity HSR, tourism weak
• Performance Based
• New focus on land use policies
• Embrace Coercion!

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SOME HISTORY

• Most histories mark 1956 as the start of the
  Interstate actually the Interstate idea
  predates WW II.
• 1956 is the date that the funding plan was set in
  place by Congress.

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The Interstate story begins with a sketch by FDR
in 1937
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Refined throughout the war years
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THE FUNDING CONCEPT

• The system was to be funded by user charges
  paid into a Trust Fund
• The fundamental principle
• Users should pay for their use of the system AND
  government should dedicate the funds to the care
  and improvement of the roads users ride on.
• The entire concept, which has very effective
  controls built in, is being lost RAPIDLY!

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We also got

• A system capable of attracting support
• -- And repelling diversions
• The flag-ship of the national program
• Now no such flag ship program exists
• And it shows in the 3 interim reauthorizations
  since 1991
• A funding system without a clear national purpose

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ARE WE ON THE CUSP OF A NEW ERA?

• End of the Post-Interstate Interim?
• Start of the what?
• The Post-Post-Interstate Era!
• A Crisis of Goals A Crisis of Finance or just
  the usual problems?
• Congress believes there is no problem so big it
  cant be run away from!

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THE PERFECT POLICY STORM?

• Time of Intense Need for
• Time Of Intense Anti-auto, Anti-mobility Plans
  and Policies
• Time Of Strong Policy Cover by Pricing Theory
• Result
• Punitive Pricing in a Good Cause.
• Decline of User Fee cornerstone to funding
• Cash-Cow-ification of Tolls and User Fees
• Few things are as frightening as when government
  can be seen to be doing good by taxing something.
  

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Issues with publics choices

• Too much transportation spending
• Low income are transportation poor
• Transportation trade-off with housing loses
• Job sprawl a problem
• We all must come home to the center city
• Is the public coerced by circumstances or just
  making dumb choices?
• Is this serious and real or just reauthorization
  hype?

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TWO REACTIONS TO 4 GAS

• BOO !
• Less VMT social and economic interactions lost
• Now is the worst time to be cutting economic
  activity

• HURRAY!
• Schadenfreude!
• Those suburbanites had it coming!
• At last we are at the Tipping Point
• Now there will be a rush to the city center of
  people and jobs

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What am I defending ?

• I am defending the personal vehicle/road system -
  where the owner determines when and where it goes
  and who goes along!
• I am not defending the internal combustion engine
  or any particular motive power!
• The term Personal Vehicle is right Personal
  vs Mass!

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Does the personal vehicle need defending? It
doesnt seem like it!

• The public doesnt think so.
• All trends support the personal vehicle.
• In 40 years of commuting we added 66 million
  commuters and 70 million auto users!
• The auto wins the market debate but not the
  policy debate

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WHAT OF TRAVEL IS FRIVOLOUS?A congressional
question to me 1979People travel for rational
reasons

• All trips have an economic or social transaction
  at their end of value to the traveler (and to
  Society)
• If your transportation goals can be met by
  everyone staying home RETHINK YOUR GOALS!

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Slow Decay of User Principle

• Spending
• Transit share
• Enhancements
• Earmarks
• Local Needs
• High Speed Rail

• Revenue
• 8 billion Trust Fund bailout
• 6 billion Trust Fund bailout
• 26 billion future bailout

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PROTECT THE FED USER FEE

• not only are we likely to be in the twi-light
  between gas taxes and in-vehicle pricing for a
  long time it is good that we will be in that
  twi-light for a long time. AEP
• The Post-Gas Tax Era is not yet! (20yrs?)
• We must prepare for it but continue to defend
  what we have.
• 1.7 billion per penny still has the power to
  attract sharks.

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As long as Congress has the power to tax gasoline
it must be dedicated to highway needs

• That sets the upper limit on fuel fees.
• Without dedication there is no upper limit on
  federal gas tax (see any European country).
• Feds very efficient tax collector hire them?
• Continued diversion ends support for new fees.
• There is no way to assure no federal gas tax
  Firewall and RABA are the best we have!
• Let the gas tax dwindle? Fit the program

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The policy conflict opposed thinking about the
world

• Neighborhood
• Shorter trips
• Walk/bike
• Land use solutions
• Design
• Whats freight?
• Accessibility
• Public
• Mass
• Behavior change
• Make it happen

• Globally Integrated
• Longer trips
• Broad community
• Choices
• Market forces
• Major role for freight
• Mobility
• Private
• Personalized
• Technological fix
• Let it happen

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The focus on changing behavior diverts us from
the real issues

• Enhancing Economic Opportunities
• Access To Workers Access To Jobs
• Mainstreaming Minorities
• Improving Safety
• Serving An Aging Population
• Greater Freedom Of Mobility
• Infrastructure Reconstruction
• More!

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Summing up threats opportunities

• Threats
• Policies to penalize
• Dispersed jobs
• Dispersed households
• Policies to promote
• Higher density
• Organized society
• Subsidies to
• Recentralize
• Promote density

• Opportunities
• Jobs moving closer to skilled workers
• Increased mobility
• Promote greater job access
• Live where you want work where you want

There is no fear they will succeed but the waste
in time and will be disastrous
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THANK YOU

• alanpisarski_at_alanpisarski.com

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WE HAVE NO CHOICE BUT TO CARE GREATLY ABOUT
TRANSPORTATION!

• Transportation is all about reducing the time and
  cost penalties of distance on our economic and
  social interactions.
• To the extent that nations succeed in that
  function they enable tremendous forces of
  economic opportunity, social cohesion and
  national unity.